WEEK 9

• Loans and Credit The BSP extends discounts, loans and advances to banking institutions in order to influence the volume of credit

  consistent with objective of price stability and maintenance of financial

  stability.
• Rediscounting It is one of the monetary tools of the BSP to regulate the level of liquidity in the financial system allowing banks to manage liquidity by borrowing funds from the BSP using eligible papers. .
• Overdraft Credit line is available to banks participating directly in the clearing operations of the Philippine Clearing House Corporation
• Emergency Loans - financial assistance to banking institutions to serve as temporary remedial measures to help solvent banks overcome their liquidity problems arising from causes beyond their control, pursuant to Section 84 of R.A. No. 7653, as amended by R.A. No. 11211
• Overdraft Credit Line - The BSP imposes a ceiling on the amount of overdraft a bank may incur due to failure to cover clearing losses through interbank borrowings and/or repurchase agreements with BSP.
• The emergency loan shall be limited to the amount needed by the applicant bank to overcome the emergency or financial predicament but shall not exceed 50% of its deposits
• Credit Information System - It was approved by the Monetary Board on 6 January 2005 and implemented through Circular No. 480 dated 15 March 2005, amended by Circular No. 515 and 630 dated 6 March 2006 and 11 November 2008, respectively
• Electronic Rediscounting System - An online internet-based rediscounting facility that the BSP makes available to all active and qualified banks nationwide
• Discount rate - the interest rate that are charged by the central bank to commercial banks and other financial institutions for short-term loans
• Interest on reserves - refers to the additional amount of funds that a bank keeps
• Open market operations - these is where central banks buy or sell securities
• Financial Inclusion - Monitoring and assessing financial system risks to maintain stability and mitigate potential crises. Developing contingency plans and frameworks for crisis management and resolution
• Financial Consumer Protection - Establishing regulations and guidelines to protect the interests of financial consumers. Ensuring transparency, fairness, and responsible practices by financial institutions